CITY OF MELBOURNE, FLORIDA MINUTES REGULAR MEETING BEFORE CITY COUNCIL FEBRUARY 27, 2018

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1 A regular meeting of the City Council was held in the City Council Chamber, 900 East Strawbridge Avenue, and was called to order at 6:30 p.m. by Mayor Kathy Meehan. A. OPENING 1. The invocation was given by Pastor W. Thomas Pope, St. Paul s United Methodist Church. 2. Pledge of Allegiance. 3. Roll Call Present: Kathy Meehan Mayor Tim Thomas Council Member, District 1 Betty Moore Council Member, District 2 Debbie Thomas Council Member, District 4 Paul Alfrey Council Member, District 5 Teresa Lopez Council Member, District 6 Michael A. McNees City Manager Alison Dawley City Attorney Cathleen A. Wysor City Clerk Cindy Dittmer Community Development Director Absent: Yvonne Minus Vice Mayor, District 3 (death in the family) 4. Proclamations and Presentations Mayor Meehan read and presented the following proclamations: Irish American Heritage Month (March 2018) accepted by Patrick Ripton, President, and Ed Reilly, Ancient Order of Hibernians. American Red Cross Month (March 2018) accepted by Anda Ray, Board Member, and Heidi Curtis, Red Cross Space Coast Chapter. 4.1 Presentation of Employee Service Awards Employees who reached a milestone of service during February were invited to the City Council meeting to accept a service pin and gift card. David Ambrose, Environmental Community Outreach, was recognized by the Mayor and City Council and City Manager for 20 years of service. Additionally, Mayor Meehan presented City Manager Mike McNees with a pin for five years of service. 5. Approval of Minutes February 13, 2018 Regular Meeting Moved by Moore/Alfrey for approval. Motion carried unanimously. Page 1 of 20

2 6. City Manager's Report City Manager Mike McNees referenced the report relating to the city s opportunity to engage in a bond refunding, which would result in a savings of approximately $50,000 per year (for the next nine years). The Director of Finance is working on this item. Before proceeding, the item would return to City Council for approval. Mayor Meehan expressed condolences to Vice Mayor Yvonne Minus and her family following the death of her daughter, Yolanda Davis. The Mayor called for a moment of silence in honor of the 17 victims of the recent shooting at Marjory Stoneman Douglas High School in Parkland, Florida. 7. Public Comments Mike Nowlin, 313 Live Oak Lane, stated that the Fire Chief, with the approval of the City Manager, recently removed rescue units from Fire Stations 77 and 78. He stated that this is unacceptable as it requires the other stations to provide coverage. He noted that he has already seen a reduction in response time from Station 77 in his area. Mr. Nowlin offered his view that this decision was made to remove boots on the ground and increase brass. He asked Council Members if they were aware of this decision. Further, he asked Council to direct the City Manager to direct the Fire Chief to restore the rescue units. Mayor Meehan said that she was not aware a change was made. She asked the City Manager to provide a report to City Council. Mr. McNees advised that he believes the decision was negotiated between the Fire Chief and the union. Staff will provide a report to Council with details on what was done, why, and the effects of the decision. Council Member Tim Thomas stated that information relating to an impact on service should have been provided to City Council. Mr. McNees replied that he and the Fire Chief take exception to the suggestion that service has been compromised. Council Member Betty Moore commented that she is very upset over this decision. She informed Council that any information that is returned to City Council on this issue does not have to be accepted. The change affects the entire city; units have to be shifted to provide coverage. She expressed a desire for City Council to be able to weigh in on this issue. Council Member Paul Alfrey asked that the report provided to City Council provide a before and after comparison of supervisors and line personnel. Marsha Drabik, 1003 Sparkman Street, referenced the mural issue that was discussed at the last meeting. With regard to future appeals (of decisions made by boards), she recommended that the City Council streamline the process. Ms. Drabik distributed a Page 2 of 20

3 copy of Section of the City Code (powers and authority of the Historic and Architectural Review Board) and stated that based on the language, City Council should be able to overturn a decision of the board without further appeal to the Planning and Zoning Board. She closed by asking City Council to take the steps necessary to place direct control over city boards under City Council. City Attorney Alison Dawley explained the appeal process established in City Code for a mural. (The process was changed at the last meeting following) discussion about preserving the due process rights of the parties. This matter involves a quasi-judicial decision, which is not a popularity vote. It is about applying the standards that are set in Code and providing a process to appeal that decision. City Council established the standards to be applied. The Historic and Architectural Review Board applied those standards, and the appeal process will verify that those standards were applied appropriately. Council Member Tim Thomas expressed concern that City Council is being described as making a decision based on a popularity vote. With regard to future cases, he said that he will pursue the City Council being able to resolve those issues. Mr. McNees addressed the larger issue. The City Council has adopted legislation providing how each board will function and appointed citizen representatives to make judgment calls within the rules that have been set. In the referenced case, the Historic and Architectural Review Board made a judgment call within the scope of its ordinance that a lot of people feel is a mistake. He cautioned against changing the rules when a board makes a judgment call that Council disagrees with. Mr. Thomas stated that an argument can be made in the appeals process that standards were not applied. He encouraged the City Manager to argue vigorously during the appeal process that the standards were not applied. The before and after photographs of the referenced mural are not even close, which should force the mural to be removed. Council Member Paul Alfrey agreed that the standards were not applied in the case of the (Eau Gallie) mural. Dan Morton, Lieutenant/Paramedic with the Melbourne Fire Department and executive board member for the International Association of Firefighters Local 1951, stated that at the request of one or more members of the City Council, he has provided a handout containing background information on the reduction of Fire Department staffing levels. He commented that it is not true that the union and the city negotiated the change in staffing levels. The effect of the loss of the staffing clause in the collective bargaining agreement means that the union has no control over staffing levels. Mr. McNees referenced Mr. Morton s comment that at the direction of a Council Member, he brought forward information. Mr. McNees pointed out that the City Charter directs that the administrative affairs of the city will be handled by the City Council through the City Manager. He added that he feels like he has been ambushed, which is why he Page 3 of 20

4 called out this Charter provision. The City Manager repeated that a full report will be provided to City Council. Thomas and Mitzi Thompson, 2263 Pineapple Avenue, reported that following (Hurricane Irma) on September 11, their entire house was flooded twice with sewage. Ms. Thompson said that they believe the lift station on Pineapple Avenue was not functioning properly and that the manhole located in front of their house had not been properly maintained. She detailed numerous contacts with the city and the lack of response. The claim for the cleanup of the house has been paid, but they are not going to be compensated for rebuilding their home. Their home is gutted, and homeowners insurance will not pay because their policy doesn t cover sewer backups. The Thompsons asked City Council to assist so they can be paid to rebuild their home. A brief discussion followed regarding the location of the property, the extent of the damage, and the lack of response from the city. Mr. McNees confirmed that he will provide information regarding this issue to City Council. Ms. Thompson submitted a packet of information containing invoices, correspondence, and photographs. B. UNFINISHED BUSINESS 8. ORDINANCE NO ADMINISTRATIVE ZONING CODE AMENDMENT (Z AD) BAT HOUSES: (Second Reading/Public Hearing) An ordinance amending City Code, Appendix B, Article II, Definitions, and Article VII, Accessory and Temporary Uses and Structures, by classifying bat/bird houses as a garden amenity in the zoning regulations. (Applicant City of Melbourne) (First Reading 1/23/18) (Postponed - 2/13/18) City Attorney Alison Dawley read Ordinance No by its title. Community Development Director Cindy Dittmer reported that at the last meeting, City Council asked that Shari Blissett-Clark, President of Florida Bat Conservancy, be invited to this meeting. Although she was not able to attend, staff asked her to provide written comments on the requested changes to height and setbacks. Ms. Dittmer advised that a written response was not received. She asked Council how it wished to proceed. Mr. Alfrey recommended that the ordinance be (postponed) until the next meeting to allow an opportunity for the bat expert to attend. Moved by Alfrey/T. Thomas to postpone this item until the March 13 meeting. Motion carried unanimously. 9. ORDINANCE NO (CPA ) AND ORDINANCE NO (Z ) EAU GALLIE HARBOUR CLUB CONDOMINIUMS: Ordinances providing for a Comprehensive Plan Amendment and Rezoning on 1.31± acres located on the east side Page 4 of 20

5 of North Harbor City Boulevard, north of Sarno Road and south of Spiller Street. (Owner/Applicant - Eau Gallie Harbour Club Condominium Association) (Representative - Richard Wagner) a. Ordinance No /CPA : (Second Reading/Public Hearing) An ordinance changing the existing future land use from Mixed Use to High Density Residential. (First Reading - 2/13/18) b. Ordinance No /Z : (Second Reading/Public Hearing) An ordinance changing the existing zoning from C-R-3(17), Multiple- Family Dwelling High Density District with a cap of 17 units per acre) to C- R-3(20) (Multiple-Family Dwelling High Density District with a cap of 20 units per acre). (First Reading - 2/13/18) The City Attorney read the ordinances by their titles. There were no disclosures by City Council and no comments during the public hearing. Mr. Thomas asked staff to provide a status report on the dilapidated boats at the marina located behind the condominium property. Moved by Moore/T. Thomas for approval of Ordinance No based upon the findings contained in the Planning and Zoning Board memorandum. The roll call vote was: Aye: T. Thomas, Moore, D. Thomas, Alfrey, Lopez, and Meehan Motion carried unanimously. Moved by Moore/Alfrey for approval of Ordinance No based upon the findings contained in the Planning and Zoning Board memorandum. The roll call vote was: Aye: T. Thomas, Moore, D. Thomas, Alfrey, Lopez, and Meehan Motion carried unanimously. 10. ORDINANCE NO (CU /SP ) KENEMUTH MINI- STORAGE: (Second Reading/Public Hearing) An ordinance granting a conditional use for a mini-storage use, along with site plan approval for 20 units along with a Phase 2, 1,980± square foot office addition, on a 0.82±-acre partially developed property zoned C- 2 (General Commercial), located at the northeast corner of Babcock Street and Lincoln Avenue. (Owner/Applicant - SAVA Properties, LLC/Michael Kenemuth) (Representative - Vaheed Teimouri, P.E.) (First Reading - 2/13/18) Attorney Dawley read the ordinance by its title. There were no disclosures by City Council. The Mayor opened the public hearing. There were no comments from the audience. Page 5 of 20

6 Moved by Lopez/D. Thomas for approval of Ordinance No with site plan approval (SP ), based upon the findings and conditions contained in the Planning and Zoning Board memorandum. The roll call vote was: Aye: T. Thomas, Moore, D. Thomas, Alfrey, Lopez, and Meehan Motion carried unanimously. 11. ORDINANCE NO CAPITAL IMPROVEMENTS ELEMENT: (Second Reading/Public Hearing) An ordinance amending Appendix D, Chapter 4, Section 4.04 of the City Code; amending Chapter X of the Comprehensive Plan entitled "Capital Improvements Element" to reflect the annual update of the Capital Improvements Schedule. (Applicant - City of Melbourne) (First Reading - 2/13/18) Attorney Dawley read Ordinance No by its title. There were no comments during the public hearing. Moved by D. Thomas/Alfrey for approval of Ordinance No based upon the findings contained in the staff memorandum. The roll call vote was: Aye: T. Thomas, Moore, D. Thomas, Alfrey, Lopez, and Meehan Motion carried unanimously. C. NEW BUSINESS 12. Contract award for the Lift Station No. 20 Force Main Replacement (Avocado Avenue and Coleman Street), Project No , General Underground, LLC; Chiefland, FL - $222, City Engineer Jenni Lamb reported that four bids were received for the project. The low bidder is General Underground, LLC. Although this contractor has never done work for the city, staff conducted an extensive background check. The scope of work consists of constructing approximately 3,200 feet of new six-inch diameter PVC force main from Lift Station No. 20, located at Avocado Avenue and Coleman Street, to an existing sewer manhole located on Steele Street between McClendon Street and Aurora Road. Council Member Lopez pointed out the significant difference between the low and high bids and asked if staff examined the bids closely. Ms. Lamb confirmed that the city s consultant and staff reviewed the bids and researched the past work of this contractor. Moved by D. Thomas/Alfrey for award of construction contract to General Underground, LLC of Chiefland, Florida in the amount of $222, for the Lift Station No. 20 Force Main Relocation, Project No Motion carried unanimously. Page 6 of 20

7 13. Utilization of the City's Horizontal Directional Drilling Services Contract (Contract No /LT) for the Water Main Replacement associated with Babcock Street Reconstruction, Project No , Young s Communication Company, Inc.; Melbourne, FL - $1,021, Ms. Lamb explained that the ten-inch water main located under the northbound lanes of Babcock Street, between Hibiscus Boulevard and the railroad tracks, is over 80 years old. Before any heavy construction can begin, that pipe needs to be replaced. The rightof-way for Babcock Street has not transferred from the county to the city yet; therefore, City Council s approval will be contingent on either the transfer of the roadway to the city or the county s permission to begin construction of the water main. Discussion followed regarding the timing of the roadway project, the process involved in obtaining permission to do work in the county right-of-way, and whether the water main project would delay the roadway reconstruction. Ms. Lamb confirmed that there will be a delay. At the very latest, roadway construction should begin the first week of May. Council Member Lopez recalled that Vice Mayor Minus expressed concern about flooding near one of the businesses in this area. Ms. Lamb replied that drainage work will not be part of the Babcock Street reconstruction project; however, city staff will look at the issues and prioritize with the list of storm water projects. Moved by D. Thomas/Alfrey for approval to utilize the City s Horizontal Directional Drilling Contract with Young s Communication Company, Inc. of Melbourne, Florida in the amount of $1,021, for the water main replacement associated with the Babcock Street Reconstruction, Project No contingent upon transfer of the road right-ofway or Brevard County permission to construct within Babcock Street. Motion carried unanimously. 14. A&V No. 369: Request to abandon and vacate a 585-foot portion of the Sun Lakes Road right-of-way. Ms. Lamb reported that the applicant, Brian Daigle, stated on his application that the purpose of the request is to: merge property to fence and protect the property on both sides of the vacated right-of-way from pedestrian and vehicle access; and expand the protection zone for the American Bald Eagle s nest located on the property adjacent to the right-of-way. The applicant has indicated that he is working with property owners south of the right-of-way to fence the Florida Power and Light easement to reduce crime and disturbances to his property and to the eagle s nest. Ms. Lamb provided the history on how the right-of-way was created. A 40-foot road rightof-way was created by a 1912 plat from Mr. Daigle s property west towards Minton Road; another portion was created by a 1924 plat east of Mr. Daigle s property. The gap in the middle was created by a deed in 2000 in conjunction with development of Eagle Lake East Subdivision. Page 7 of 20

8 Ms. Lamb displayed a PowerPoint presentation regarding the request. Additionally, she distributed and reviewed an 11 x 17 map titled additional right-of-way obtained. The map shows that as development has occurred along the original right-of-way, the city has required additional right-of-way for the east-west corridor. The City of West Melbourne has also recognized the 1912 right-of-way as an east-west corridor. West Melbourne has also obtained additional right-of-way. The 1998 City of Melbourne Comprehensive Plan future transportation map identifies a portion of Sun Lakes Road, between Babcock Street and Lipscomb Street, as a two-lane collector road. The 2010 City of Melbourne Comprehensive Plan future transportation map identifies a future road between Lake-in-the-Woods Drive and Dairy Road. There is clearly a history of planning this east-west corridor. Construction of the road is not in the Capital Improvement Program. Rather, this is a long-range plan for the city. The project would most likely be phased with the first phase located between Dairy Road and Babcock Street. Within the next five years, preliminary design and right-of-way acquisition for the portion not currently owned by the city will likely be programmed, which would put construction of the first phase in the five- to ten-year range. Construction between Babcock Street and Lipscomb Street would depend on whether the eagle s nest is still in the area and the impact the roadway would have on the nest. Ms. Lamb stated that the city cannot build a road that would impact the nest. Ms. Lamb displayed a map that shows the location of the nest and the radius around it, which was required as a part of environmental permitting. The nest has moved since the time the radius was created, and it is now located closer to the road right-of-way. Continuing, Ms. Lamb reported that the applicant subdivided the property to create a buffer for the eagle s nest. Photos taken several weeks ago show that the nest appears to have been damaged during the recent hurricane. Ms. Lamb said that she does not know the current status of the nest. Ms. Lamb cited City Code Sections and relating to the review criteria for abandon and vacate requests. In summary, the right-of-way has been identified as an east-west corridor; there is a likelihood of using the right-of-way; the outfall for the South Lakes Subdivision storm water pond runs through the right-of-way and a private easement to the north; and all of the adjoining lots would not have frontage to a road based on the applicant subdividing the property without platting. Based on City Code, city staff recommends denial of the request. Ms. Lamb proposed a compromise. If the applicant truly wants to fence the property to protect the eagle and stop people from trespassing, the city could issue a right-of-way use agreement to the property owner to install a fence within the right-of-way. She added that if she thought construction of the roadway was imminent, she would not make this suggestion. This would meet the intent of the applicant s request while not giving up any future use of the east-west corridor. Page 8 of 20

9 Ms. Lamb closed by saying that should Council wish to approve the request, city staff will prepare an ordinance along with conditions. She repeated the staff recommendation for denial of the request. City Council made the following disclosures: Council Member Debbie Thomas said that on February 23, Mr. Daigle sent her an asking for support of the request due to the eagle s nest. He also indicated that he did not want a roadway in this location. Ms. Thomas said that she responded that she was looking into the situation and that Mr. Daigle may wish to contact Ms. Minus as this is in her district. Council Member Alfrey said that he did not respond to an he received on February 23 from Mr. Daigle with the same information. Council Member Lopez said that she also received the and responded that she will wait until she receives all the information at the City Council meeting. Mayor Meehan added that she believes everyone, including her, received the same . Mayor Meehan opened the floor for public comments. Brian Daigle, 510 Sun Lakes Road, applicant, said he provided a certified survey to the city that shows the location of the eagle s nest and all of the trees. American Bald Eagles live on his property and are located within 125 feet of the right-of-way. The main issue is the potential environmental impacts threatening the eagles and the safety and security of the adjacent communities. He said that he, the eagles, and four neighborhoods would be impacted by a potential roadway connecting between Tarpon Way and Sun Lakes Road. Mr. Daigle described his attempts beginning in July 2017 to obtain backup information from the city concerning the east-west corridor and any information that would support the need for a road in the area. The city replied that there was no additional data other than the adopted Comprehensive Plan exhibit, which was completed by an outside consultant. The city s map is not supported by any of the county s maps that are found in the public records. The roadway does not appear on any of the Transportation Planning Organizations long-range plans, although the TPO staff has indicated that nothing would prevent the city from planning and implementing local street improvements within its jurisdiction. Mr. Daigle stated that to date, the city has not provided any data supporting the need for a roadway in the area. City staff does not seem to be concerned regarding the presence of protected wildlife. The addition of a local roadway within the subject area would be a convenience to a few hundred local residents; it would not alleviate any potential future congestion or help reduce the regional traffic network. Regarding the eagles, Mr. Daigle said that they have been in the same location since recordkeeping began in The nest is active. The nest was completely destroyed by Hurricane Irma last year, but the eagles returned and rebuilt the nest. Two eaglets are in the nest now. Mr. Daigle closed by asking City Council to join the efforts in protecting the eagles by approving the abandon and vacate request. Page 9 of 20

10 Mayor Meehan asked Mr. Daigle if he is amenable to the staff suggestion of a right-ofway use agreement. Mr. Daigle replied no because legally, it would still be a public rightof-way with public access. Council Member Debbie Thomas asked if people illegally enter the area. Mr. Daigle replied yes and said that the area is used by pedestrians and motorists. He constantly has to remove people from his property, including vagrants. Mr. Daigle confirmed for Council Member Tim Thomas that every August, the eagles return and two eaglets hatch at the beginning of every year. There have only been two or three years since 1996 when there haven t been eagles in the nest. Mr. Thomas referenced the eagles as being the symbol of our country and thanked Mr. Daigle for his efforts in looking after them. Karen Barber, 3847 Mt. Carmel Lane, spoke in support of the request and stated that she doesn t see the need for an east-west connection, especially between Babcock Street and Lipscomb Street. She named major roads in the vicinity and said that if a roadway is built, she will put her house up for sale. Lynne Partridge, 2713 Kaileen Circle, Palm Bay, representing the Vista Oaks Homeowners Association, referenced the form letters being submitted by residents in support of the request. She noted that she has pictures of the eagle s nest. The U.S. Fish and Wildlife Service has indicated that any kind of disturbance must remain at least 600 feet from the eagles. She referenced the permits that the city would have to obtain to construct a road near the eagles. Ms. Partridge reported that she walked the property before the meeting and can confirm that it contains squatters, garbage, and beer bottles. Judith Doyle, 4106 Mt. Carmel Lane, said that she is concerned about any building or major activity surrounding the area for the following reasons: the eagle s nest and an increase in traffic since the subdivision to the east was built. Many people traveling along the Babcock Street corridor use Sun Lakes Road as an exit to get to Lipscomb Street to avoid heavy Palm Bay traffic. She spoke in opposition to construction of a future roadway. Joyce Osterman, 4027 Mt. Carmel Lane, spoke in favor of preserving the habitat for endangered or protected wildlife that live on the property. She listed several species ranging from gopher tortoises to falcons, owls, and hawks. Ms. Osterman stated that residents do not want the land developed or a roadway constructed. She encouraged the city to conduct an extensive survey before agreeing to bulldoze the natural Florida preserve. William Hubbard, representing the South Lakes Homeowners Association, said that there are two protected species living on the property gopher tortoises and eagles. Although the eagle is no longer endangered, it is still protected. The applicant would like to fence the property, which would prohibit many people from observing the nest; the discharge pipe from their storm water pond runs through the right-of-way; residents of the Page 10 of 20

11 subdivision do not want any more green space taken over by pavement; and there is a flooding issue in the neighborhood. Mr. Hubbard acknowledged that everyone is concerned about the eagles. No one can build a road as long as the eagles are on the property. He closed by saying that Mr. Daigle began an campaign that made it seem like the road would be built immediately. He closed by asking if the applicant would be willing to take over maintenance of the outflow from their storm water pond. Robert Costlow, Vista Oaks, Palm Bay, spoke in support of Mr. Daigle s request and expressed his desire that construction of a roadway be put off permanently. Council Member Lopez asked if the request could be temporarily approved with a condition that the right-of-way be taken back in the future if the road is built. Attorney Dawley replied that the city would have to purchase the right-of-way. Continuing, Ms. Dawley offered to research if there is a way to limit access to an unpaved right-of-way. Ms. Lopez expressed support for researching alternatives. Ms. Moore agreed and added that City Council needs more information before taking action. Mr. Thomas expressed agreement with authorizing the City Attorney to find a compromise position. He stated that he s not prepared to make a determination at this meeting. Mr. Alfrey said that the City Council needs to determine whether it wants the city to continue losing green space. He asked if the long-range goals of the city include construction of a road in this location. A road in this area would destroy the neighborhood. He closed by expressing support for gathering more information. Ms. Thomas expressed support for the City Attorney looking further into this issue. She added that she would also like to know the exact rules regarding the distance that must be maintained from the eagle s nest. With regard to the (outfall for South Lakes Subdivision storm water pond), she expressed concern based on communities in that area having experienced flooding. Mr. Daigle returned to the lectern and advised that because the eagles settled in an urban environment, the setback for this nest is smaller, which means there are opportunities to build in this area. Regarding a compromise, he said that he would be willing to have a setback that would provide a buffer so that if the city put in the road in the future, he would grant it for free. Regarding the outfall for the South Lakes storm water pond, he stated that it s already covered by an easement. He added that he won t take responsibility for another development s drainage pipe. Attorney Dawley asked Mr. Daigle if he plans to build a house on the property. Mr. Daigle replied that he originally bought the property to build a small retirement home; however, plans change and he doesn t plan to build at this point. He stated that he s not going to develop the property and build a subdivision. Attorney Dawley asked about the reference to setback. Mr. Daigle said that a setback would enable the city to build a road in the future if he builds a house or structure for an eagle s nest camera. He Page 11 of 20

12 stressed that he s not interested in an easement because that would allow people to have access. Attorney Dawley asked that the parties focus on where we want to go rather than the vehicle that will be used to get there. If the goal is to prohibit vehicular traffic, she will explore ways that can be done. Mr. Daigle added that he s also trying to restrict pedestrian traffic. A brief discussion continued. Moved by Lopez/Moore to (postpone) this item until the City Attorney returns to City Council with alternatives. Motion carried unanimously. 15. CONSENT AGENDA: a. Approval for Contract Award for Concrete Curb, Sidewalk, Driveway, Restoration and Unclassified Excavations for the Public Works and Utilities Department, Palm Bay Concrete & Material, Inc.; Melbourne, FL - estimated annual cost $100,000. b. Purchase of 26 XG75/M7300 Remote Mount Radio Packages for the Police Department, Communications International Inc.; Rockledge, FL - $107, c. Award of contract for surface prep and coating of five Water Production ground storage tanks, Harry's Painting and Enterprises, Inc.; New Port Richey, FL - $220,982. d. Award of City-wide Concrete Work at unit pricing and optional pricing as needed, Professional Services Group LLC, Deland, FL as the primary contractor; and SWC Concrete Inc.; Melbourne, FL, as the secondary contractor - amount not-to-exceed of $139,500 per year. e. Approval of Subordination Agreement for a property located at 817 Stadom Street. (Applicant - Jacquelyn Chambers) f. Resolution No. 3717: A resolution providing for the repeal of Resolution No and amending the Economic Development Ad Valorem Tax Exemption Program guidelines as provided for in Chapter 54, Section , City Code by incorporating updated average wage information provided by Enterprise Florida and the State Department of Economic Opportunity. Moved by Moore/Alfrey for approval of the consent agenda, Items a through f. Motion carried unanimously. 16. ITEMS REMOVED FROM THE CONSENT AGENDA 17. Resolution No. 3718: A resolution adopting first quarter budget review recommendations. Page 12 of 20

13 Director of Finance Jeff Towne reviewed the agenda report. The report includes several items that aren t typically part of a first quarter review, which is why the item was not placed on the consent agenda. Council is being asked to approve changes in the budget that total $6,553,841, which is typical for a first quarter. Highlights include: General Fund. $2.5 million is associated with prior year encumbrances carried forward to the current year. These represent purchases ordered in fiscal year 2017, but not received until fiscal year Of the $2.5 million, $1.8 million relates to FEMA for debris removal. Capital Improvement Fund. Fire Truck Replacement. A funding reserve program was established in fiscal year 2017 to begin setting aside funds each year for the future replacement of a fire truck. $50,000 was set aside in the fiscal year 2018 budget. A transfer to correct the placement of the funding is requested. Parkway Ditch Piping. Staff is asking to cancel this project without construction and return funds in the amount of $322,822 to unappropriated budget savings. During design of the project, the consultant determined that the ditch could not be piped without causing adverse drainage impacts to surrounding areas. Stormwater Pipe Replacements. As a result of Hurricane Irma, six locations throughout the city experienced storm water pipe collapses. Staff is preparing the bid package and expects to award a contract in the coming weeks, at which time it will return to City Council for approval. The estimated cost of this project is $974,000. Funding will include a transfer of $121,750 from unappropriated budget savings along with expected FEMA and state reimbursements totaling $852,250. Municipal Development Tracking System. The system will provide an integrated land use and zoning management, construction plan/engineering permitting and inspection, code enforcement, fire code enforcement, building permit/inspections, business tax software system and related services to improve public services and operating efficiency. The project began with the 2014 Information Technology remediation plan. Funding was added in Requests for proposals have been returned. A budget exists for the project in the amount of $339,600. Software and implementation costs will be $516,000; therefore, a budget transfer is needed. Two additional items will return to Council: funding for a project manager to assist with implementing this month project; and funding for tablets and similar equipment. An RFP for a fee study was issued. Staff would like to recover the amount that is being spent on software by those that will use the software for inspections, business tax receipts, and services. The idea is to pay for the software up front Page 13 of 20

14 and recover the cost over time through fees that will be charged. Therefore, a $37,000 budget transfer is included with this item. Transportation projects. The Parkway Drive guardrail replacement project is for the removal of 4,325 linear feet of damaged guardrail and construction of 4,420 linear feet of new guardrail between Wickham Road and Croton Road. A transfer of $250,000 from Local Option Gas Tax is required. Recreation projects. The city was awarded $50,000 matching grant from the Florida Inland Navigation District to fund the design phase of the Riverview Park boardwalk. A budget amendment is required to recognize and appropriate the grant revenue. Public facilities projects. A transfer of $24,000 from Public Facilities Impact Fees is requested to fund the design of a project to boost the signal strength for emergency responders on all five floors of City Hall a requirement of obtaining a building permit. Construction is estimated at $125,000 and will be programmed into the fiscal year 2019 budget. Mr. Thomas expressed support for the Parkway Drive guardrail project moving forward. With regard to the city s golf courses, he stated that he s looking forward to the workshop meeting City Council plans to conduct. The city is continuing to lose money at the courses. Mr. Thomas asked the funding source of the $60,000 for replacement golf netting following Hurricane Matthew. Mr. McNees replied that it came from General Fund reserves. Mr. Alfrey referenced the Municipal Development Tracking System and expressed support for the planned upgrades to the building permitting process. Moved by Moore/Alfrey for approval of Resolution No unanimously. Motion carried 18. Task Order No. BMEG 204 to the Continuing Contract for Engineering Services for the Riverview Park Boardwalk, Project No , Bussen-Mayer Engineering Group, Inc.; Merritt Island, FL - $79,500. Ms. Lamb stated that the city received grant funds in the amount of $50,000 from the Florida Inland Navigation District Waterway Assistance Program, for the $100,000 project to survey, design, and permit the boardwalk through environmentally sensitive lands to allow public access to the Indian River Lagoon at Riverview Park. The boardwalk is part of the Riverview Park master plan. She added that boardwalks are permitted for education purposes. There will be additional hurdles to ensure that the city meets all the permitting criteria. Page 14 of 20

15 Moved by T. Thomas/Moore for approval of Task Order No. BMEG 204 to Bussen-Mayer Engineering Group, Inc. for the Riverview Park Boardwalk, Project No in the amount of $79,500. Motion carried unanimously. 19. Lien Rescission : (Public Hearing) Recommended order from the Code Enforcement Board to deny request to rescind outstanding fine. (Applicant/Respondent: Amanda C. Meyer; Subject property: 2401 Greenway Drive) Code Enforcement Official Mark Herold reported that on January 24, the Code Enforcement Board heard a request for rescission of lien from the property owner. The property owner did not present any mitigating factors to the board to consider. The city record indicates an uncooperative and negative attitude from the owners. The fine continued to run until the property came into compliance. Based on those factors, the Code Enforcement Board made a unanimous recommendation to deny the lien rescission request. Mayor Meehan called for disclosures. There were no disclosures. Additionally, there were no comments during the public hearing. Moved by Alfrey/D. Thomas for approval of the Code Board's unanimous recommendation to City Council, that the respondent's request for lien rescission be denied and that the current lien of $3,500 remain in effect until paid. Motion carried unanimously. 20. PARKING LOT IN A RESIDENTIAL DISTRICT (PR ) FIRST UNITED METHODIST CHURCH: (Public Hearing) Request for approval of a parking lot located within a residential district zoned R-1A (Single-Family Dwelling Low Density District) and R-2(6) (One-, Two-, and Multiple-Family Dwelling Medium Density District with a cap of six units per acre) to improve two parking areas abutting the east and west sides of an existing house of worship located on the north side of East New Haven Avenue, on the west side of Platt Street and on the east side of Stockton Street. (Owner - First United Methodist Church of Melbourne, Florida, Inc.) (Applicant/Representative - Jake Wise, P.E., Construction Engineering Group) (P&Z Board - 2/1/18) Community Development Director Cindy Dittmer reviewed the request and displayed the property on the map. On February 1, the Planning and Zoning Board voted unanimously to recommend approval of this request. There were no disclosures by Council and no comments during the public hearing. Moved by Moore/ for approval of PR , parking lot in a residential district, based on the findings and conditions contained within the Planning and Zoning Board memorandum. Motion carried unanimously. 21. PRELIMINARY PLAT APPROVAL REQUEST (SD ) AND REQUEST FOR SUBDIVISION VARIANCES FOR SOUTHAMPTON LAKES: (Public Hearing) A request Page 15 of 20

16 for preliminary plat approval for a 103-lot, single-family residential subdivision and two subdivision variances from City Code, on 42.67± acres zoned PUD (Planned Unit Development), located on the northwest corner of Snicole Avenue and Dairy Road. (Owner - John R. Gasse, Capstone ResDev, LLC) (Applicant - D. R. Horton, Inc.) (Representative - Scott Glaubitz, P.E., P.L.S., BSE Consultants, Inc.) (P&Z Board - 2/1/18) Ms. Dittmer reviewed the request for preliminary plat approval along with the two requested subdivision variances (to not provide a six-foot opaque wall with decorative masonry and, instead, provide a berm with vegetation and views of the lake; and to not provide the Code-required cul-de-sac at the southern terminus of Magenta Isles Lane to not encroach within the Florida Power and Light easement). On February 1, the Planning and Zoning Board voted unanimously to recommend approval of this request. There were no disclosures by City Council. The Mayor opened the public hearing. Kenneth Ludwa, BSE Consultants, was available for questions. There were no additional sign-up sheets from the audience. Moved by D. Thomas/T. Thomas for approval of the two requested subdivision variances. Motion carried unanimously. Moved by D. Thomas/Lopez for approval of SD , based upon the findings and conditions contained in the Planning and Zoning Board memorandum. Motion carried unanimously. 22. City Council guidance for development process for the budget. Mr. McNees introduced the item and stated that staff is beginning the process of developing a new budget for fiscal year Each year, staff seeks guidance on the general parameters within which City Council would like the budget developed. Mr. Towne reviewed the following: Predictions within the current budget are in line, which is a good predictor of the next fiscal year. Property taxes are the largest source of revenue for the city and make up about 39% of the total revenue in the General Fund. Staff is seeking permission from City Council to look for other revenue streams that will help us diversify property tax revenues. If the additional homestead exemption scheduled for the November 2018 ballot passes, it would take effect in fiscal year The city received a chart from the Brevard County Property Appraiser s Office that shows the city would lose over $1.1 million in revenue if the item passes. The agenda materials recommend cutting Page 16 of 20

17 the impact in half by reserving half this year in preparation for the full impact in fiscal year A number of communities in Florida have adopted a fire assessment fee. The amount of revenue from this source would reduce the property tax revenue. Such a fee requires a lot of analysis. Staff is seeing approval from Council to explore instituting a fee. The result is that it would take the fee to provide fire services out of the valuation based assessment. At this point, Mr. McNees said that staff s intention would be to implement a fire assessment fee in a completely revenue neutral way. The fee would not provide a way to make more money; rather, a way to take some of the pressure off property taxes. Council Member Moore stated that she will fight that proposal. Mayor Meehan added that she hears a lot of complaints about the county s assessment. Mr. McNees replied that Council does not have to authorize staff to look at this issue. He repeated that the idea is that the fee would be revenue neutral. For every dime the fire assessment fee would raise, the collection of property taxes would be lowered. Council Member Debbie Thomas pointed out that she would like to have all the information before making a decision. Mr. Alfrey agreed with authorizing staff to look at the fee. He added that the city will have to find a way to make up the loss of $1.1 million. The additional homestead exemption question will pass and the city has to get ahead of the impact. Council Member Lopez asked if the city is considering the revenue it will receive from new development and new businesses, which represent a lot of funds that can be put back into the General Fund. Council needs to look at this first before making a decision on raising anything. Mr. Towne confirmed that the city looks at new growth every year from development as part of the funding formula. The historic aspect of that reveals that it won t add millions to the tax rolls. The city only collects $39 million for the entire city. Mrs. Lopez said that we re only talking about $1.1 million and she believes that can be found in the budget right now. Mr. Towne continued reviewing the highlights: The Water and Sewer Fund is doing well. There are $115 million in capital improvements on last year s five-year plan that can t be funded with cash without dipping into our reserves. A capital plan and financing plan need to come together to be presented to City Council. Mr. Towne cautioned against delaying utility rate increases, which will bring in additional funds for the capital plan that were included in the last rate study. Staff recommends that a rate study be conducted in the current year to prepare us for the next year. In the Golf Course Fund, revenues and expenditures are down. Overall, the fund is down 3.7% for the same period last year. There are indications that chemicals are Page 17 of 20

18 higher than typical. Staff would like to conduct a workshop meeting with City Council in April or May regarding the future of the golf courses and incorporate the direction into the budget for Staff needs guidance on the funding amount for grants-in-aid. $60,000 is usually set aside for charitable contributions to non-profit organizations along with $50,000 for Steady Town. Staff would like to build in a factor for a modest increase in pay for staff throughout the city. Staff is seeking approval to budget for the second phase of the compensation and classification study that is underway. As a reminder, money was included in the budget to address the most inequitable pay structures. There may be more and staff would like to continue with that funding to take care of the employees. Capital items continue to be pushed out. If the city continues on this course and a crash hits, the results will be devastating. The city continues to have a dedicated millage for public safety capital and road resurfacing at $1.2 million each. The storm water utility rate study is in process to determine whether the current methodology for assessing storm water utility fees remains appropriate; if the resulting revenues cover the cost associated with providing storm water improvements; and whether there should be a component of the assessment dedicated to maintaining the infrastructure. The city needs the resources to maintain what has been constructed. Staff is seeking permission to prepare the budget using the same property tax rate as the current, which is mills. Additionally, August 1 is the recommended date for the budget workshop meeting and September 12 and September 26 are recommended for the budget public hearing/regular meeting dates. With regard to the capital items that have been deferred, Mrs. Thomas said that she would like to see the items that staff considers to be critical along with a prioritization. Mr. Thomas said that he is interested in seeing the revenue neutral impact of a non-ad valorem fire assessment. Regarding the future impact of the additional homestead exemption and no new revenue streams, the City Council needs to be prepared to make some tough decisions in making up a little over $1 million in the budget. He pointed out that $310,000 can be found in: $200,000 from reserves being spent on the golf courses; $60,000 on replacement netting; and $50,000 for nonprofit organizations. Mr. Alfrey implored the city s department heads to look through their budgets for areas that can be cut. If departments are top heavy, cuts should be considered. It will be a collective effort to address this issue and it s not fair to place the entire burden on the City Council. Mr. McNees asked Council to be aware that the budget receives an unbelievable level of scrutiny. One of the most commonly held misperceptions is that you can step into the Page 18 of 20

19 budget and cut all the fat. Every item taken out brings people into the room saying that the service being cut is valuable and needed. Council Member Moore said that the city can t continue to defer. This happened in the past, which resulted in a tremendous bill coming due for replacement of all the public safety vehicles. The city has to be realistic in order to keep the city viable and running. Mr. McNees said that issue was addressed by hard wiring a certain amount of money into the budget every year to ensure public safety capital needs are met first. The city is hurting with its rolling stock that is not related to emergency services. A brief discussion continued regarding review of replacement vehicles and the level of city reserves. Moved by Alfrey/D. Thomas for approval of Items 1-7 as outlined in the agenda report. Motion carried unanimously. Based on the motion, City Council approved the following: 1. Estimate property tax revenue using the current rate in development of the proposed budget. Identify operational and capital needs to present to City Council for consideration with the revenue calculated at the current millage rate. 2. Inclusion of a modest pay increase in base pay for non-union employees in the proposed budget to maintain comparable pay adjustments across labor groups. 3. Review the effects the additional homestead exemption will have on General Fund operations. 4. Consider diversification of General Fund revenue by considering the adoption of a fire assessment fee; identify any other revenue streams that will help diversify revenue and increases to existing fees to recoup the cost of providing services, as applicable. 5. Budget for final implementation of the classification and compensation system adjustments as determined by the study presently ongoing. 6. Schedule a City Council workshop on golf course funding issues. 7. Schedule City Council s fiscal year 2019 budget workshop on August 1, 2018 at 6:30 p.m. and reschedule the September regular City Council meetings as follows: conduct the first budget public hearing and regular City Council meeting on Wednesday, September 12, 2018 at 6:30 p.m. and conduct the second budget public hearing and regular City Council meeting on Wednesday, September 26, 2018 at 6:30 p.m. Page 19 of 20